Daily Dose, EU

Asian Bonds Follow US Gains Despite Volatility in Indian Stocks – Asia Market Wrap

Asian bonds followed Treasuries rose amid hints of a softening US job market, which boosted Federal Reserve rate-cut expectations. Stocks lacked direction.

Australian and Japanese currencies surged as US data showed job vacancies at their lowest level since 2021. This boosted Treasuries on Tuesday, pushing the 10-year yield down six basis points and fuelling anticipation that the Fed may be able to cut rates this year. US yields rose in Asia.

Japanese equities fell more than 1%. Benchmarks rose in Hong Kong and South Korea, boosted by rate-sensitive tech stocks. Mainland Chinese shares slumped despite statistics showing growth in the services sector.

Indian markets opened turbulent, with investors assessing Prime Minister Narendra Modi’s party’s capacity to create a coalition administration after failing to obtain a majority on its own. Equities varied, as the Rupee rose against the dollar after falling to a near-record low the previous session.